Foreign finance houses are teaming up with local partners in the run- up to advise on the privatisation of Turk Telecom, say business sources in Istanbul (MEED 16:12:94). They include Lehman Brothers, Nomura, Deutsche Bank, Coopers & Lybrand, Goldman Sachs, Salomon Brothers, Banque Indosuez, JP Morgan, NM Rothschild, SG Warburg, Morgan Stanley and Banque Paribas.
Consultants for the privatisation will received a fixed fee of between $3 million -5 million and also a sales commission of between 3.8 and 4.5 per cent, according to Reuters. The privatisation should collect between $8,000 million-23,000 million. It will be a major contributor to the government’s target of raising $20,000 million from privatisation in 1995.
The go-ahead for privatisation is expected to be approved by a law to be passed in parliament in the week ending 13 January. If passed, a short list of bidders will be prepared by the end of January.
Turk Telecom was formed from the telecommunications division of the posts, telegraphs & telephones (PTT) administration